MBABANE : The proposed takeover of Rhodes Food Group (RFG) Holdings by Premier Group is expected to generate approximately R28 billion in annual revenue and R1.7 billion in profit after tax.
This is according to official communication shared with employees and union representatives.
The details are contained in a series of formal communications issued by company executives, including a letter by Hardus Hamman, Head of Group Employee Relations, and an internal notice by RFG Chief Executive Officer Pieter Hanekom.
In a letter dated March 26, 2026, addressed to the Secretary General of the Swaziland Agriculture and Plantations Workers’ Union, Hamman confirmed that management had previously communicated the key aspects of the transaction to both employees and the union. He referenced a formal communiqué issued on October 16, 2025, titled “Premier Group makes offer to buy RFG Holdings.”
According to Hamman, that earlier communication stated that the transaction “is not expected to result in any material change to the employment conditions of RFG employees,” adding that this was intended to ensure continuity in manufacturing operations and customer service.
Hamman further stated that employees were updated again on March 24, 2026, following approval of the transaction by the Eswatini Competition Commission. He indicated that a more detailed official communication addressing employee concerns would be issued no later than March 31, 2026.
“Management remains committed to transparency and the maintenance of a harmonious labour relations environment,” Hamman wrote, adding that engagement with the union would continue as the transaction moves toward finalisation.
The financial scale and structure of the transaction were outlined in a separate communication issued to employees by RFG CEO Pieter Hanekom. In the notice, Hanekom confirmed that RFG had entered into an agreement with Premier Group, under which Premier would make an offer to acquire all shares in RFG.
He explained that RFG shareholders would receive one Premier share for every seven RFG shares held. The offer is based on a price of R22.00 per RFG share and R154.00 per Premier share.
Following completion of the transaction, RFG shareholders are expected to collectively own approximately 22.5 per cent of the enlarged Premier Group. RFG will also delist from the Johannesburg Stock Exchange (JSE).
Hanekom stated that the combined entity is projected to generate annual revenue of about R28 billion, with profit after tax estimated at R1.7 billion. He noted that the transaction is seen as an opportunity for stakeholders from both companies to participate in the growth of the enlarged group.
He described RFG as an attractive acquisition opportunity for Premier, citing its market-leading position in convenience meal solutions, strong market share across key product categories, and a portfolio of established brands.
Hanekom also highlighted that although RFG and Premier share common customers, there is no overlap in the products and categories in which they operate. He said the transaction would create a stronger player in the food production sector while maintaining the strengths that have supported RFG’s performance.
The communication also outlined Premier’s market position, noting that the company holds a 28 per cent share of the South African formal bread market, 38 per cent of the wheat market, 15 per cent of the sugar confectionery market, and 22 per cent of the local feminine care market.
Hanekom indicated that both companies expect operational continuity, with senior management remaining in their current roles to run RFG operations within the Premier structure. He reiterated that the transaction is not expected to result in material changes to employee conditions.
“The transaction is not expected to result in any material change to the employment conditions of RFG employees and we expect senior management to remain in their current roles,” he stated.
He added that the business would continue to operate as normal while the transaction is being finalised, in line with RFG’s existing strategy.
The process still requires approval from RFG shareholders at a general meeting scheduled for later in the year, as well as approvals from regulatory authorities.
In a further update to employees, Johan Potgieter confirmed that the Eswatini Competition Commission approved the transaction on March 17, 2026. He stated that RFG and Premier FMCG were working on issuing an official communication to address concerns raised by employees.
“Such communication will be circulated by no later than 31st of March 2026,” Potgieter said.
Background information provided in the communication indicates that Premier Group is one of the oldest food and consumer packaged goods businesses in South Africa, having originated as a bakery in Cape Town in 1824.
The company is headquartered in Midrand, Gauteng, and operates through two main divisions: Millbake, which produces and distributes bread, maize and wheat products, and Groceries and International, which includes sugar confectionery, home and personal care products, as well as manufacturing operations in Mozambique.
Premier’s portfolio consists of 38 consumer brands supported by a private label offering. Its manufacturing footprint includes 30 mills, bakeries and plants, along with 28 distribution depots across South Africa, Mozambique, Eswatini and Lesotho. The company’s products are exported to 41 countries.
Premier was listed on the JSE in March 2023 and has a market capitalisation of R19.9 billion.
As outlined in the communications, the proposed acquisition is positioned as a strategic move expected to significantly expand the scale of operations, with projected revenues reaching R28 billion annually once the transaction is completed.
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